Newly named and newly tobacco-free CVS Health Corp. Tuesday reported a higher-than-expected Q3 revenue increase of 9.7%.
The drugstore retailer saw Q3 profits of $948 million, down from $1.25 billion a year ago.
Pharmacy retail and pharmacy business services revenues were up, which helped offset a decrease in retail sales due to the retailer’s decision to stop selling tobacco products as of last month.
CVS Health Corp. is pivoting from being a typical drugstore retailer to a well-rounded health care services business. Eschewing tobacco sales is no small part of that, and something that dinged its bottom line. It will take time and probably more investments to get the company to where it’s headed, but it looks to be helping shape a whole new world of health care delivery and health and beauty retail.